Brazil states ask court to double what Vale, BHP should pay for dam burst
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2024
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Source: Yahoo Finance
- Brazilian States Seek to Increase Damages: Two Brazilian states are requesting a court to more than double the amount that miners Vale and BHP, along with their joint venture Samarco, must pay in damages for a 2015 deadly tailings dam failure.
- Initial Ruling and Consequences: In January, a federal judge ruled that Vale, BHP, and Samarco must pay 47.6 billion reais in damages for the dam burst, leading to increased provisions related to the case by Vale and BHP.
- Impact of Dam Collapse: The 2015 dam collapse near Mariana, Minas Gerais, caused mud and toxic waste flow, resulting in 19 deaths, displacing hundreds, and polluting the Doce River in Espirito Santo state.
- Request for Higher Payment: Minas Gerais and Espirito Santo states are asking for a total of 100 billion reais from Vale and BHP, arguing that the companies can afford more based on recent earnings.
- Negotiations and Rejections: The Brazilian government and Espirito Santo rejected a payment proposal of 127 billion reais from Vale, BHP, and Samarco, while Minas Gerais expressed interest in continuing negotiations to reach an agreement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
